Soft costs consist of all expenses incurred or to be incurred before actual construction starts such as: Survey, Architectural, Engineering, Permit Fees etc.

Enter the total cost (paid or unpaid) in the first box and he out of pocket amount in the second box.

Hard Costs

This is the actual cost of physical construction. Enter the total paid or unpaid in the first box and the out of pocket expenses in the second box.

Lot Value

Enter the present value of the property or the purchase price, if owned for less than two years in the first box and your equity in the second box.

Future Value

Enter the future value.

Loan InformationAll Fields Required

Description

Value

Loan to Value

Select the desired Loan to Value of the construction Loan Program you have in mind.

Loan Fee

Select the loan fee (points) you expect to pay.

Construction Term

Select the length of time, in months, you expect construction to take.

Loan Rate

Enter the loan rate you expect to qualify for.

%

Contingency Resave

Results

Description

Value

Costs to Be Financed

Soft Cost

This is the balance of the soft cost to be financed.

Hard Cost

This is the balance of hard costs to be financed.

Lot Pay Off

This is the current balance of the existing lot loan to be paid off.

Interest Reserve

This is the interest reserve that will be added to the loan amount to finance the construction loan payments, during construction.

Contingency Reserve

This is a reserve amount added to the construction loan to pay for unexpected cost over-runs.

Loan Fees

Loan Fees; self explanatory.

Other Closing Costs

This is calculated on a fixed percentage base, and it may vary from lender to lender. Includes costs such as underwriting, loan docs, title insurance, insurance etc…

Total Cost

This is the total cost of the project, paid or unpaid.

Loan Amount

The loan amount based on the LTV chosen above, in the second section of the calculator.

Cash to Close

Required cash contribution from the borrower, to make up the difference between the loan amount and the total cost of the project.

LTC

%
Resulting Loan to Cost Ratio based on the information provided. This is a critical number and if it turns out to be more than what the construction loan program will allow then the LTV must be re-adjusted to accommodate the correct ratio.